Personal Loan of 50,000

A Rs. 50,000 loan is typically classified as a small cash loan. I.e., getting a personal loan up to Rs. 50,000 is not overly challenging nowadays, as most lenders have simplified the application process and moderated their eligibility criteria. Thus, you can now conveniently manage any unexpected expenses that arise in your day-to-day life with an instant personal loan of Rs. 50,000.

In this blog post, you will gain insights into the eligibility criteria, interest rates, repayment terms, and other pertinent factors associated with a Rs 50,000 personal loan. Moreover, we compiled a list of interest rates offered by the leading banks/NBFCs in India, empowering you to find the most cost-effective financing option.

Why You Need Rs. 50,000 Personal Loan ?

A Rs 50,000 loan is a multipurpose loan, granting you the freedom to use the loan amount for whatever you want at your discretion. However, for certain reasons availing of a Rs 50,000 personal loan online is ideal, as follows: 

Debt Consolidation:

Having multiple debts/loans or struggling with burdensome high-interest rates, taking out a personal loan to consolidate your debts can be a smart financial move. This helps you pay off your debts and streamline your finances with a single monthly payment at a potentially lower interest rate.

Medical Emergencies

Unforeseen medical expenses that catch you off guard can strain your finances. In such situations, obtaining an instant personal loan of Rs. 50,000 can assist you in covering your healthcare expenses without depleting your savings. 

Home Repairs

Taking care of your home is unavoidable, but unforeseen repairs can strain your budget. However, whether it is a leaking roof, plumbing issues, or electrical problems, a Rs 50,000 loan can assist you in covering the costs of these urgent home repairs.

Small Business Ventures

Starting or expanding a small business often necessitates a modest infusion of capital. In such situations, a Rs 50,000 personal loan online can serve as seed capital for your entrepreneurial endeavours, enabling you to move closer to your goal more quickly.

Educational Expenses

Investing in education is vital for securing a brighter future. Whether it is paying for your course fees, purchasing books, or acquiring study materials, a Rs 50,000 loan might be the support you need to seize your education aspirations.

Wedding Expenses

Weddings can be costly, whether it's your own or a family member’s, and they can strain your savings. So, if you require additional funds for ceremonies, catering, or other expenses, a Rs 50,000 personal loan can provide the financial assistance you need.

Car Repairs 

Braking down your car can disrupt your daily life. Whether you need to fix your current car or buy a used one, you can use an instant personal loan of Rs. 50,000 to get the money you need for your car-related expenses.

Rs. 50,000 Loan Interest Rates & Charges

The following are the major fees and charges you can expect when securing a Rs 50,000 loan and during your repayment journey as well.

Interest Rates

The interest rate is the percentage that a lender charges borrowers for providing lending services. In general, there are two types of interest rates: fixed and variable. A fixed-rate loan keeps the interest rate constant for the entire loan duration, while a variable-rate loan changes over time in response to market conditions.

Processing Fee

When the lender processed and approved your Rs 50,000 personal loan, the lender experienced some administrative costs and levied it from you in the name of processing fee. Namely, it's a percentage of your total loan amount, typically ranging from 0.5% to 2.5%, deducted by the lender at the time of disbursement of the loan.

Prepayment Charges 

When you prepay a loan, certain lenders may levy fees based on the outstanding loan amount. These fees can generally range from 2% to 5% of the remaining loan balance.

Late Payment Charges

A fee that lenders impose on borrowers when they fail to make a timely repayment on the respective loan. The fee amount may differ from lender to lender. 

Comparison of Interest Rates Offered by Various Banks for Personal Loans of Rs 50,000. 

Here is the comparison of Interest Rates Offered by Various Banks for Personal Loans of 50000 List of Bank

Banks/NBFCs Interest Rates (p.a.)
Bank of India 9.10% onwards
Axis Bank 10.49% onwards
IDFC First 10.49% onwards
IndusInd Bank 10.49% onwards
HDFC Bank 10.50% onwards
ICICI Bank 10.50% onwards
Bank of Baroda 10.90% onwards
Kotak Mahindra Bank 10.99% onwards
Bajaj Finserv 11.00% onwards
State Bank of India 11.05% onwards
Punjab National Bank 11.40% onwards
Canara Bank 13.00% onwards

Eligibility Criteria for Rs. 50,000 Personal Loan

The following are the common eligibility criteria for Rs 50,000 personal loan online:

  • Age: 

Be somewhere between 21 to 60 years. 

  • Occupation: 

Be a salaried individual or self-employed with a stable source of income. 

  • Income: 

Have a monthly income of at least Rs. 20,000. Notably, individuals residing in urban cities such as Delhi, Mumbai, and Bangalore typically require a minimum salary of Rs. 25,000.

  • Credit Score: 

Have a minimum credit score of 700.

  • Work Record: 

Have a stable employment history, preferably with a minimum of 1 to 2 years of work experience.

  • Nationality: 

You should be an Indian citizen.

Rs 50,000 Personal Loan for Payment Tenures

Ideally, a Rs 50,000 loan offers a repayment period of up to 5 years. A repayment period of 1 to 2 years is considered short-term, while 3 to 5 years is considered long-term. Let's look at the key characteristics of shorter and longer repayment periods.

Short-Term Tenure

  • Lower Interest Costs: 

Opting for a shorter repayment period means you'll have to pay more money each month as an EMI, but it will reduce the total interest you pay in the end. So, if you can easily handle the higher monthly payments, short-term tenure can be a good choice for you.

  • Faster Loan Closure: 

Choosing a shorter tenure leads you to repay the loan faster thereby you will be debt-free sooner and can allocate your resources to other financial goals.

  • Reduce Total Repayment Amount: 

Your interest rate is directly proportional to the additional loan amount you must pay the lender. Therefore, opting for a shorter loan tenure minimises the total amount you need to repay.

Long-Term Tenure

  • Lower EMIs: 

The longer the loan tenure, the lower the EMI (equated monthly instalment) becomes,  reducing the likelihood of defaulting your EMI. 

  • Flexibility: 

A longer tenure gives you more flexibility to manage your finances due to the lower EMIs, especially when you have other financial responsibilities to address.

  • Higher Interest Costs: 

While longer tenures result in lower EMIs, they also lead to higher total interest costs in the long run

How to Get a Rs. 50000 Personal Loan?

You can easily apply for a Rs 50,000 personal loan online by following these simple steps:

  • Visit the official website of Urban Money.
  • Tap the “Loan” section and choose “Personal Loan.” You can locate these options on the horizontal menu bar of the home page. 
  • You will be directed to the personal loan page to compare multiple lenders, check your eligibility, and submit applications to your preferred lenders. 
  • Click on your chosen lender, which will take you to another page where you can initiate your personal loan application.
  • Upon scrolling down, you can locate the “Appy Now” button, and tap on it.
  • A small digital form will appear on your screen, prompting you to input your name, mobile number, city, and the specific type of loan you wish.
  • Click the "Submit" button.
  • A 6-digit OTP will be sent to the mobile number you provided.
  • Enter the OTP and once again click the “Submit” button.
  • Within a day, a representative from Urban Money will contact you regarding your chosen lender.

Documents Required for Rs. 50,000 Personal Loan

Following are the documents that you are required for an instant personal loan of Rs. 50,000:

Proof of Identity: Aadhar card, passport, voter ID, or driver's licence.

Proof of Address:  Utility bill, passport, ration card, or Aadhar card 

Income Proof: Salary slips, bank statements, income tax returns, or Form 16.

Employment Proof: Employment contract, appointment letter, or any relevant documents to establish your employment status.

Bank Statements: Last three to six months' bank statements to verify your financial stability.

Passport-sized Photographs: A few passport-sized photographs may be required for loan application and documentation.

Features of Rs 50,000 Personal Loan

The following are the key features of an instant personal loan of Rs. 50,000:

Collateral Free

A Rs 50,000 personal loan doesn't require you to pledge any of your assets as collateral or security. This liberating feature empowers you to access the necessary funds without jeopardising your valuable assets, making it an even more borrower-friendly and highly preferred choice.

Competitive Interest Rates

Typically, the interest rates for a Rs 50,000 loan start at an average of 10% per annum, which is among the best in the market. This allows you to save thousands of rupees over time and retain a substantial portion of your earnings.

Flexible Repayment Tenures

You can choose a loan tenure of up to 5 years. This outstanding feature empowers you to customise your loan EMIs with utmost flexibility, ultimately helping you to mitigate the likelihood of default. 

Multipurpose Loan

Irrespective of your reason, whether it's for purchasing a car, renovating your home, funding higher studies, travel, or any other purpose, you can secure a loan. In essence, if you meet the eligibility criteria, the lender remains entirely indifferent to the purpose of your loan.

Quick and Digital

The entire loan application process can now be effortlessly completed online or digitally. I.e., you are no longer required to visit a bank branch, fill up physical forms, or submit documents in person. Instead, you can take advantage of the fintech website Urban Money, which saves significant time and effort. As a result, you can anticipate receiving the funds in less than 48 hours.

Key Points Lenders Consider While Offering Personal Loans of Rs 50,000 

The key points that lenders consider while offering personal loans up to Rs. 50,000 are as follows.

Credit Score

The most important factor a lender considers when you apply for a loan is your credit score. A good credit score shows that you have been responsible with your payments and greatly increases your chances of getting approved for a loan. Typically, having a credit score of 750 or higher is seen as positive.

Debt-To-Income Ratio

Checking your debt-to-income (DTI) ratio is a way for lenders to see how much of your monthly income goes toward paying off your debts. If your DTI is high, you have less money available to manage new loans, which could lead to lenders rejecting your loan application. 

Income

Lenders want to see that your income is steady enough to repay the loan. So, it is important to disclose all your income sources and your monthly salary to the lenders. Providing a complete picture of your income makes lenders more confident that you can repay the loan, making it more likely for them to approve your application.

Employment History

Having a stable and consistent employment history demonstrates your ability to hold down a job, which can boost your chances of getting approved for a loan. On the other hand, if you have changed jobs more often or had a gap in employment within the last year, it might make the lender concerned and could lead to them rejecting your application.

Co-applicant

Adding a co-borrower with your loan application — whether it’s your spouse, parents, or children — can increase the likelihood of loan approval. In these situations, lenders evaluate both the applicant’s credit scores and repayment capacity, strengthening your overall eligibility for a Rs 50,000 loan.

Documentation

Submitting complete and accurate documentation along with your Rs 50,000 personal loan application is pivotal. Lenders use the documents you have submitted and your application to verify your identity and creditworthiness. Any inconsistencies or missing documents can slow down or disrupt the approval process.

Frequently Asked Question (FAQs)

What is a 50,000 personal loan?

A Rs 50,000 personal loan is a multipurpose loan that you can secure without having to pledge any of your assets as collateral.

Do I need collateral to secure a Rs. 50,000 personal loan?

No, you require no collateral to secure a Rs 50,000 loan.

How quickly can I get the 50,000 loan amount after approval?

You can typically receive the loan within a day or two.

How does the interest rate work for a Rs, 50,000 personal loan?

The interest rate for your Rs 30,000 personal loan can range from 10% to 15% per year.

Can I prepay or foreclose the Rs 50,000 personal loan?

Yes, you can prepay or foreclose the 50,000 personal loans with the lender’s consent.

How much credit score do I need for a Rs.50,000 loan?

A credit score of 700 is the minimum requirement for a Rs 50,000 loan.

Can I get a loan of Rs 50,000?

Yes, you can get a loan of Rs 50,000 as long as you meet the common eligibility criteria set by the lender.

How can I get a Rs. 50,000 loan immediately?

You can get a loan immediately by applying for a personal loan through Urban Money.

Can I get a personal loan if my salary is Rs. 50,000?

You can get a personal loan if your monthly salary is Rs 50,000.

Will I get a Rs. 50,000 personal loan if I don't have a bank account?

No, you cannot get a loan if you don’t have a bank account.

Will my EMI be auto-debited from my bank account?

Typically, your EMI is a predetermined amount automatically debited from your bank account on a predetermined date.

Urban Money